Kellwood reshuffles Oakland Operation to focus on developing Koret brand
28 Jul '05
6 min read
On an ongoing basis, as if the restructuring plan was complete at the beginning of fiscal 2005, the Company expects net earnings of $43.5 million, or $1.55 per diluted share. This compares with the Company's previous guidance for net earnings of $68.5 million, or $2.38 per diluted share and versus actual fiscal 2004 net earnings of $70.1 million, or $2.50 per diluted share.
"Obviously they are very disappointed by their recent performance," commented Mr. Skinner. "Approximately one fourth of the earnings per share decrease from their previous guidance for the year is due to the expected shortfall in results for the divisions included in their restructuring efforts."
While sales for the second quarter are expected to be in line with their expectations, second quarter earnings are now expected to be negatively impacted by higher than anticipated markdowns on spring and summer merchandise in certain women's sportswear divisions and lower margins in Men's Sportswear.
"Importantly, they have identified and are currently implementing initiatives to bring about a positive change in these and other business units," he added. "At the same time, they have also taken an aggressive stance toward expense control and have put into action several processes to ensure that their merchandise is on trend and delivered in the right quantities at retail. They remain committed to executing a strategy that will result in long term growth and increased shareholder value."
marketing@alchempro.com
